Executive Review VI: NBJ’s 2004 Business Achievement & Product Merit Awards ............ 1-6

Sustainability is at the heart of brand equity for nutrition companies Endangered Species,
Stonyfield Farm and Golden Temple (Yogi,Peace) ............................................................. 7-8

DSEA adds valuable evidence in favor of supplements’ positive impact on health costs .... 9-10

Univera’s move to new rural campus gives CEO pause to reflect on vertical integration,
environmental stewardship and the connection between nature and science ........................ 11

U.S. Commerce programs provide firm footing for NOW Foods’ international strategy ......... 12

Anthony Almada of IMAGINutrition reviews what the year delivered in nutritional science and
the challenges that lie ahead ............................................................................................. 13-14

Science must reside at the core of product development, says Jarrow’s Sid Shastri ...... 15-16

OFRF officers talk about what went right for organic farming in 2004—and what didn’t ...... 16

Vision becomes reality for The Organic Center for Education & Promotion, an organization
founded to champion scientific truths in organic agriculture .............................................. 17-19

Spectrum Organic’s CEO Neil Blomquist reports on relocating his company, product sales,
and supply & demand in organic ingredients .......................................................................... 19

Jay Jacobowitz of Retail Insights looks at how big picture trends, private label gains, and
consumer preferences impacted natural retail in 2004; plus actions to take in 2005 ........ 21-22

Ideasphere stabilizes brands and revitalizes partnerships in 2004 ........................................ 23

Pat Turpin of USBX addresses consolidation and food industry trends in 2004 ............. 24-25

Is low-carb evolving towards low-glycemic? New Era’s Saul Katz traces the steps .......... 26-27

Pharmavite President Brent Bailey provides a check-list for innovation ................................ 28

NBJ Stock Reporter looks at fourth-quarter results ......................................................... 29-31

BI 01.05$120.00

Growth in Very Large Companies

Gold: Amway China Co. Ltd. for doubling sales to more than $2 billion, thanks to 130,000 sales reps that introduced products through 140 retail stores. Amway is reportedly expanding production capacity to about $3-billion worth of products in China and adding 40-50 new stores in 2005. Amway’s supplement brand Nutrilite accounts for more than half of Amway’s sales in China, while personal care brand Artistry has a 20% share. Amway is part of Alticor Inc., which posted $6.2 billion in sales for fiscal year ending Aug. 31, 2004—up $1.3-billion or 21% compared to the year prior and the largest increase in the direct-selling company’s history. Significant sales increases were recorded in Japan, Taiwan, Thailand, Europe, India, Malaysia and Australia. Health product sales grew 55%, and health & beauty businesses combined accounted for nearly 60% of worldwide sales.

Silver: NBTY Inc. for growing fiscal 2004 net sales by 39% to $1.65 billion compared to $1.19 billion for fiscal 2003, mostly through acquisition. Net income was $112 million compared to $82 million. For the year ended Sep. 30, 2004, the wholesale division grew 76% with the addition of Rexall; European sales (Holland & Barrett, GNC and others) grew 36% and direct sales rose 3%. In August, Fortune magazine recognized NBTY as one of the 100 fastest-growing companies in America.

Bronze: Whole Foods Market for growth of 23% in its fiscal year to a record $3.9 billion in sales. Comparable-store sales increased 14.9% in 2004, and average weekly sales were $482,000 for all stores, up from $424,000 in 2003. New stores opened in fiscal 2004 had average weekly sales of $575,000, including the much publicized Columbus Circle store in New York City. Whole Foods ended the year with 163 stores and a record 53 stores and 2.6 million-square-feet under development.

Growth in Large Companies

Gold: Pharmanex, a NuSkin company, for growing sales 20% in its last four quarters to $540 million worldwide. Contributing strongly to sales was the introduction of its Bioscan Program, which uses the BioPhotonic Scanner to measure carotenoid antioxidant levels in the skin (see product awards). In the third quarter of 2004 in the United States, where the scanner has mostly been introduced, Pharmanex supplement sales were up 43% at a time when many U.S. network marketing companies have been posting flat domestic sales and focusing on international growth.

Silver: Berkeley Premium Nutraceuticals, an early 2004 consolidation of Warner Health Care, Wagner Nutraceuticals, LifeKey and Boland Naturals, for first-year consumer sales of nearly $250 million. The company’s premium-brand strategy of condition specific, daily regimen supplement packs targets sex, weight, skin, joints, heart, eyes, memory, menopause, fatigue, stress and sleep with pharmaceutical-style names like Rovicid, Suvaril, Enzyte and Altovis.

Bronze: Earthbound Farm for expanding organic sales by 28%. Organic accounts for about 72% of total sales, which were $357 million in 2004—the company’s 20th anniversary year. Earthbound Farm’s certified organic produce is available in every state and in three-quarters of supermarkets nationwide. The largest grower-shipper of organic produce and specialty salads in the world, Earthbound Farm ranks as the largest privately held organic company, second overall behind only Dean Foods (Silk and Horizon) in the U.S. organic industry.

Growth in Mid-Size Companies

Gold: Kudos again to Garden of Life, which turned in another year of flourishing growth in 2004 reported by the company at 35% for sales now nearing $60 million wholesale, up from $43 million in 2003. Growth was driven by broader consumer penetration and greater usage by existing Garden of Life consumers. The company says Primal Defense is the not only the top-selling probiotic supplement but the top-selling product overall in the natural retail channel, according to SPINS data. In addition, Perfect Food is the top-selling green foods supplement and Omega-Zyme is top in enzymes.

Silver: Nature’s Path for sustaining a 25+% annual growth record over the past several years. Leading with the flagship Optimum brand, in 2004 Nature’s Path became the first organic cereal listed by Wal-Mart/Sam’s Club. Following its mission to ‘Nurture People, Nature & Spirit’ and make organic food available to all consumers, the company said it will keep searching for new channels of trade—wherever they may be.

Bronze: Europa Sports Products powered its way to sales of more than $88 million in 2004, up 13% from $78 million in 2003. Since 2000, Europa Sports has grown 300%, outpacing the 10-12% annual growth of the sports & weight loss segment. This sports and weight loss nutrition distributorship serves gyms, health food stores and specialty supplement retailers. Europa claims about 20% marketshare across the country and has locations in Charlotte, N.C.; Mesquite, Texas and Fresno, Calif., with plans for a fourth site in Strongsville, Ohio in 2005. Almost all of its sales team are bodybuilders, fitness competitors, power lifters or former college athletes.

Growth in Mid-Size Suppliers

Gold: Over the last three years, Ocean Nutrition Canada (ONC) has reeled in sales at a compounded annual rate of 56%. In 2004 the company reported growth of 100% to exceed $35 million in sales. As one of the world’s largest manufacturers of omega-3 fish oil concentrates, ONC expects another sales boost based on the MEG-3 brand of omega-3 EPA/DHA ingredients, launch of the MEG-3 consumer education website (www.meg-3.com) and introduction of a powdered food ingredient already being used in private label bakery items by a regional supermarket chain. Also part of ONC’s growth plan is completion of a 400% expansion in fish oil manufacturing capacity.

Silver: LycoRed Natural Products for nearly doubling sales of LycoMato, a natural tomato lycopene extract, and expanding sales into the $25-30 million range. Contributing to growth were: GRAS approval for food fortification; filing of a qualified health claim associating lycopene with reduced risk of prostate cancer and a functional claim supporting bioactivity of Lycomato; and published clinical trials supporting the superior performance of naturally derived Lycomato over synthetic lycopene. The company forecast 2005 sales would more than double in the wake of FDA’s health claim announcement, which it expected in February 2005.

Bronze: Contract manufacturer Main Street Ingredients, a supplier to the dairy, nutrition and food processing industries, expanded revenues by more than 40% in 2004 for projected sales of $55 million. Manufacturing volumes rose by 35% last year and its number of employees by 15%. Main Street has invested over $5 million in warehousing, blending and agglomeration equipment. On the cards is a 40,000-square- foot expansion of its manufacturing and warehousing (currently 102,000 square feet), plus a new QC lab. Also being expanded is an R&D center and pilot plant.

Bronze: Draco Natural Products' expansion into the cosmetics industry in 2004 boosted company revenues by 35% within the first seven months. Draco’s new cosmetics division manufactures bioactive botanical ingredients for cosmetics and personal care applications and includes the company’s new Vital Treasures line. Vital Treasures ingredients are designed for both topical and internal applications. Also contributing to growth was organic certification: Draco said its wholly owned 120,000-square-foot manufacturing facility is the first in China to be certified organic.

Growth in Small Companies

Gold: With four products in its inventory, iSatori Technologies (Golden, Colo.), a privately funded company with a staff of 12, grew revenues by 387% in 2004. iSatori has funded two independent, double-blind, randomized clinical studies, one of which confirmed the effectiveness for weight loss of its flagship product, Lean System 7, and is slated for publication in the Journal of Nutrition in 2005. This year, the company has high hopes for Energize, a new product for the energy category developed by Dr. Mark Tallon.

Gold: Late July Snacks LLC for reaching a crisp $3-plus million in revenues in its first full year of business—and for proving its not too late for organic start-ups. Late July ended 2004 at a run rate which promises to double sales by the end of 2005, President and COO Nicole Dawes said. Spying a gap in the organic market, Late July pioneered the organic cracker category with transfat-free classic, saltine and cheddar varieties. Sales of its peanut butter sandwich and cheese sandwich crackers, introduced last October, are helping to maintain the company’s growth rate.

Silver: Rudi’s Organic Bakery for growing sales by more than 43% in 2004, following a similar sales increase the year prior, adding up to wholesale sales in the $15-20 million range. Rudi’s hired key personnel to focus on costs and business practices, redesigned its bakery, purchased new equipment to add profitable capacity and opened a distribution center in Boulder, Colo. with an 8,000-square-foot freezer. Also contributing to performance was the new low-carb Right Choice line, which grew sales to over $2 million in 2004 and avoided the sales decline experienced by many low-carb manufacturers.

Silver: OrderDog, the largest B2B web-based system that enables natural product manufacturers and retailers to order and sell goods, for growing more than 1,000% in annual order amount and volume since its founding in 2002. OrderDog services more than 1,000 retailers and 250 suppliers. In early 2004 the company signed an agreement to service 100+ Wild Oats Markets. During the first 11 months of 2004, OrderDog averaged 14,000 orders a month and a retail value of approximately $10 million per month.

Bronze: Igniting interest in hemp products in 2004 was a decision by the U.S. Drug Enforcement Administration (DEA) not to appeal a ruling in favor of the Hemp Industries Assn. by the U.S. 9th Circuit Court of Appeals. The court decided that the DEA has no regulatory authority over food that contains hemp, legalizing hemp foods once and for all. DEA efforts to ban hemp food had previously dampened growth of the category. Not surprisingly, 2004 saw a good deal of new interest and buzz around hemp food.

Bronze: Founded in July 2002, Living Harvest Conscious Nutrition has become one of the largest and fastest-growing companies in the hemp food business, reaching revenues approaching $2 million in 2004 on 89% growth. The company has been profitable from the start. Living Harvest produces a line of certified organic hemp food and body care products, including the first hemp protein powder, which was instrumental in opening up a new hemp category. Living Harvest said it uses a unique milling process that retains nutrient quality and density.

Bronze: The hemp category produced another winner in Manitoba Harvest Hemp Foods & Oils. Founded five years ago, the manufacturer has sprouted from $50,000 in sales in its first year to in excess of $1 million on 50% annual growth. Manitoba said it’s one of the largest integrated manufacturers of hemp foods in North America in a health food niche that grew by 66% over the past year. Company co-Founder Mike Fata also marked the year by winning the 2004 Young Entrepreneur Award from the Development Bank of Canada.

2004 Stock Performance

Top Stock Market performers in terms of stock price in 2004 were:

Gold: Hansen Natural Corp. for gaining 332% in share price from $8.42 to $36.41 by year’s end. For the nine months ended Sep. 30, 2004, gross sales were $165 million or 56.5% higher than the same period in 2003. This was primarily attributed to increased sales of beverages with higher price points like Monster Energy, Lo-Carb Monster Energy and Lost energy drinks, plus the introduction of private label sales in March 2004.

Silver: Nature’s Sunshine for gaining 142% in share price from $8.42 to $20.36. For the nine months through September 2004, net sales were $240 million versus $190 million in the year prior period. A good deal of that growth came from the Synergy Worldwide division in Asia, which grew sales to $60 million from $16 million. In the same period, the U.S. division contributed $102 million and International, $77 million in sales.

Bronze: Reliv International for gaining 75% in share price from $5.12 to $8.94 at year’s end. For the first nine months of 2004, Reliv grew sales 28% to $71.5 million, with a 29% gain in the U.S., Reliv’s largest market.

Overall the NBJ Stock Index rose 11% in 2004 compared to 3% for the Dow Jones and 9% for Nasdaq. Other NBJ Index companies with substantial gains included: Mannatech up 75%, NuSkin up 49%, Carrington Labs up 49%, ADM up 47%, Advantage Marketing up 46%, Natural Alternatives up 44%, Whole Foods up 42% and Nutraceuticals International up 40%.

Environment & Sustainability

Sambazon for showing that locals in the Brazilian Amazon can earn more by growing and harvesting fruit of the Acai palm than clear-cutting the rainforest. Sambazon, which sells fresh, high-antioxidant beverages made from Acai fruit, has organic and fair trade certification and supports thousands of indigenous families in the Amazon, where workers are making a fair wage and have health insurance and bank accounts. Sambazon’s 2004 sales topped $1 million.

Organic Valley for completing construction of its $5.9-million ‘green’ headquarters. The Village of La Farge provided $1.5 million for the new headquarters infrastructure, including a $750,000 grant from the Wisconsin Department of Commerce. USDA facilitated a $2.8-million loan. The 49,210-square-foot building features energy efficiency, energy recovery, solar-powered parking lot lights and recycled materials. Organic Valley sales rose 33% in 2004 to $208 million, with $259 million forecast in 2005. Organic Valley also raised $4 million in a preferred stock offering.

Straus Family Creamery for completing a five-year process to create electricity from its new methane digester. The digester captures gas from manure and converts it into electricity. It is expected to generate 600,000 kWh per year, saving about $6,000 in monthly energy costs and eliminating animal-waste methane, which overall accounts for 3% of global greenhouse gas emissions. Funded by California’s SB5X alternative energy grant program, the system takes advantage of net metering. This allows Straus to run meters in reverse as excess electricity is sent back on the grid.

Granum Inc. (Choice Organic Teas) for minimizing its environmental footprint since 1980. This Fair Trade tea company has participated in the EPA’s Green Power Partnership for the last two years, purchasing Green Certificates for 100% of its electricity use. In 2004, Granum implemented an employee alternative transportation program to reduce gas consumption and CO2 emissions. Granum also won the 2004 Washington State Governor’s Award for Pollution Prevention and Sustainable Practices.

Now Foods (Bloomingdale, Ill.) for internal and local initiatives to reduce environmental impacts. NOW Foods’ recycling program has reduced trash by over 50%—some 4,200 cubic yards per year diverted from landfills. Now Foods also runs employee training programs, supports community conservation and holds regular volunteer workdays to plant vegetation, remove litter and control lakeside erosion in a local forest preserve. Efforts have earned the company community service awards from the Illinois Parks and Recreation Assn. and the Illinois Assn. of Park Districts. NOW also donates to national environmental organizations like The Nature Conservancy and World Wildlife Fund.

Standard Process Inc. for a wellness program for its 200 full-time employees. Started in 1997, this year the company budgeted $250,000 for the program in which nearly 65% of employees are participating. To date, prescription claims have decreased and year-over-year medical claims remain flat. The program provides nutrition and fitness counseling, a $250 monthly supplement allotment, services of a professional trainer and onsite naturopaths, rewards for exercising, support groups for smoking cessation and weight loss, vending machines with healthy foods and chair massages. Employees who pass a wellness challenge get a $500 bonus.

In Remembrance

Jay Van Andel, co-founder of the global multilevel marketing company Amway Corp., died in December 2004. He was 80. Although Amway got its start in soap sales, the company has deep roots in the supplement business. The Nutrilite brand was founded in 1934, and the company grows and processes plants on its own certified organic farms. Last year, the Nutrilite Health Institute broke ground on the Center for Optimal Health, which will house clinical research facilities and focus on education for independent business owners.

The nutrition industry also lost Brian Maxwell, founder of PowerBar. Maxwell died of a heart attack in March 2004 at age 51. He was a world-class marathon runner and founded PowerBar in 1986 to meet the nutritional needs of athletes. In March 2000, the company was sold to Nestle for $375 million, and PowerBar remains the biggest-selling nutrition bar.

Efforts on Behalf of Industry

Under the leadership of Len Monheit, NPIcenter has greatly facilitated trade communications for the nutrition industry and allowed associations and non-profits to post faster responses to critical events. Industry information posted by NPIcenter reaches thousands of websites and newsdesks around the world. NPIcenter has increased total viewership from 450,000 visitors and 1.3 million page views in 2002 to1.4 million visitors and over 5 million page views in 2004.

Public relations firm The Shelton Group as a steering committee member of the Natural Products Foundation and serving as chairman of AHPA’s PR committee and as a member of NNFA’s communication and education committee. Suzanne Shelton founded CANI (Consultant’s Assn. for the Natural Products Industry) in 1993. Her firm has contributed financial and professional support to many organizations over the last 15 years, including DSEA, Citizens for Health, Sustain, Socially Responsible Business Awards and ABC.

Several nutrition industry trade organizations deserve recognition, but none received as many nominations as the American Herbal Products Assn. (AHPA) for working to promote the benefits of supplements to the public, the media, Congress and the FDA. AHPA has been diligent in challenging the FDA’s position on ingredients such as bitter orange and kava kava; took the lead in getting FDA to review its AER (adverse events reporting) system; and encouraged industry to be more proactive and compliant. Several nominations were also submitted for Michael McGuffin, AHPA president, recognizing his contributions to preserving DSHEA and building bridges between the herbal industry and the FDA. McGuffin has spearheaded many initiatives, including those related to AERs, Prop. 65 and captive insurance. He serves on the Dietary Supplements Subcommittee of the FDA’s Food Advisory Committee and the Advisory Board of the USC School of Pharmacy Regulatory Science Master’s Degree Program. He is also Treasurer of the American Herbal Pharmacopoeia and a board member of United Plant Savers and of the Dietary Supplement Education Alliance.

NBJ Lifetime Leadership Awards

At the NBJ Newport Summit in Coronado, Calif. in July 2004, NBJ instituted the NBJ Lifetime Leadership Awards, recognizing the contributions of four dignitaries:

Randy Dennin, VP of Global Business Development (Retired), Capsugel; and Chairman, International Alliance of Dietary/Food Supplement Associations (IADSA): Dennin recently retired from Capsugel, a manufacturer of gelatin and vegetarian capsules. Dennin has worked on regulatory issues around the globe and has been a leader in developing a worldwide market for dietary supplements for over 30 years. Dennin chairs IADSA, an alliance comprised of 42 trade associations from six continents.

Ian Newton, Managing Director, Ceres Consulting: A New Zealander, Newton joined Hoffmann-La Roche Canada in 1979 and relocated to Roche Vitamins USA (now DSM) in 1996, where he was responsible for regulatory affairs and business development. Newton oversaw the development of polyunsaturated fatty acids (PUFAs), vitamins, carotenoids and other new ingredients used in food and supplements. Newton also directed an extensive public information program about vitamins and PUFAs, in addition to outreach to health professionals, academics and the media. Now retired from DSM, Ian manages his own consulting business in Markham, Ontario.

Annette Dickinson Ph.D., President, Council for Responsible Nutrition: Dr. Dickinson has 30 years experience in the supplement industry. She earned a Ph.D. in nutritional sciences and an M.S. in food sciences from the University of Maryland. A recognized author, her most recent publication is CRN’s 2002 edition of The Benefits of Nutritional Supplements. Dickinson was appointed in 2002 to serve a three-year term on FDA’s Food Advisory Committee and is a frequent witness before the U.S. Congress and elsewhere on various aspects of dietary supplements.

Elwood Richard, President, NOW Foods: El Richard has been an active member of the natural products business since 1960 and is a strong advocate for science and quality. He co-founded the NNFA standards committee and advocates and sponsors industry organizations such as Citizens for Health, NNFA, ABC, AOAC and AHPA among others. NOW Foods also serves as an example of a company that produces high-quality products, supports independent retailers and upholds high standards of social and environmental conduct.

Personal Service

Michael Morton, Executive Director of The Healthy Foundation, for expanding the national Vitamin Relief program significantly over the past year. Vitamin Relief USA Children First increased the number of at-risk kids given free vitamins each day from 12,000 to over 17,000. Every child in Washington, D.C.’s Head Start Program (and their siblings) can now get Vitamin Relief USA vitamins. Vitamin Relief USA Senior Support increased the number of at-risk seniors receiving free vitamins each day from 300 to over 1,500. The foundation received the Celebrating Seniors Award by Senior Friendly Cities of America for its Vitamin Relief USA Senior Support program. Over 93% of all contributions to the foundation went directly to support Vitamin Relief USA distribution programs.

2004 NBJ Product Merit Awards

Pharmanex for its BioPhotonic Scanner, which provides distributors and consumers with a way to measure the effectiveness of daily supplementation. The scanner is designed to measure carotenoid antioxidant levels in the skin, which corresponds well with antioxidants such as vitamins C and E, according to Pharmanex. The scanner boosted LifePak supplement sales in the U.S. by 84% from its launch in February 2003 through December 2004. A recent clinical study published by the American College of Nutrition showed that the scanner is a more reliable measurement of carotenoid antioxidant status than conventional blood serum methods. There are more than 1,300 scanners in use across North America.

OrderDog Inc. for its iPAL Scanner, an inventory tool that simplifies and speeds up the ordering process. A handheld UPC scanner displays pricing information and buying history; used with OrderDog’s order management service it has been shown to reduce ordering time by up to 70%.

EcoNugenics for PectaSol Modified Citrus Pectin, a supplement derived from the peel and pulp of citrus fruit. PectaSol is more readily absorbed into the bloodstream than other pectins, because the molecular weight and chain lengths have been modified through enzymatic degradation. PectaSol is known mostly for studies showing its effects on inhibiting cancer metastasis and reducing tumor growth. Recent clinical studies have associated PectaSol with benefits in prostate cancer patients.

Brendan Brazier, a professional triathlete and vegan, for formulating Vega (Sequel Naturals), a vegan whole food meal replacement that is alkaline-forming, one-third raw and made with organic and non-GMO ingredients. Vega provides 25g of broad spectrum protein from five sources (hemp, yellow pea, brown rice, flax and chlorella). Other ingredients include EFAs, MacaSure organic maca, ChlorEssence chlorella, prebiotics, probiotics, enzymes and a natural antioxidant berry complex with an 800+ ORAC value. The product is sweetened with stevia. Brazier is also the author of “Thrive,” a guide to optimal health and performance through plant-based whole foods.

Cargill Health & Food Technology for CoroWiseE brand plant sterols, the foundation for several high-profile products launched in 2004. Coca-Cola’s Minute Maid Heartwise containing CoroWiseE plant sterols outperformed other heart healthy orange juices by 37% in terms of marketshare, according to Cargill. Other notable CoroWiseE-containing launches were Rice Dream Heartwise and GNC Heart Advance.

Sabinsa Corp. for ForsLean, a natural extract of Coleus forskohlii roots for weight management. The patent behind ForsLean was awarded the R&D Council of New Jersey’s 2004 Thomas Alva Edison Patent Award in the Consumer/Small Company category. Also in 2004, Cantox Health Sciences International conducted a review of ForsLean and confirmed its safety for use in dietary supplements. Clinical studies in the U.S. and India were also completed in 2004, confirming the safety and efficacy of ForsLean. Results from the U.S. study are being considered for publication; data from the India study is being compiled for submission.

Believing hygiene is as essential to optimal health as diet and exercise, Garden of Life introduced Clenzology in May 2004. The unusual hygiene range is designed to clean face, eyes, ears, mouth and nose. It includes hand and body soap; facial solutions; a tooth and gum solution; an ear solution and a natural sponge. The soft hand and body soap cleans under fingernails, where 95% of germs on the hands are located. Facial solutions target mucous membranes around the eyes and in nasal passageways.

Pharmavite LLC for Nature Made Calcium Minis and Calcium Minis with D, which are as much as 30% smaller than traditional calcium products. Each Mini contains the same amount of calcium found in larger tablets. According to the Osteoporosis Foundation, nearly 90% of adult women and teenage girls fail to meet daily calcium requirements, and a 2002 Gallup study said half of consumers who currently do not take supplements blame it on tablet size.

Lumia Organic for opening up a new organic category with candles made out of biodegradable, non-GMO soy wax (from certified organic soybean oil) plus essential oils—and no petroleum products. Lumia says smoke from paraffin wax contains 11 documented toxins, three of which are carcinogenic (formaldehyde, toluene and benzene).

Dagoba Organic Chocolate for resurrecting the legendary cacao drink of the Aztecs by adding chilies and cinnamon to its hot chocolate. Response to Xocolatl Hot Chocolate has been “overwhelmingly positive,” said Peter Guyer. The product, introduced in late 2004, “will become one of our best sellers.” Dagoba racked up triple-digit sales growth overall in 2004 based on greater same-store sales, expanded distribution and new products. Dagoba also won an American Culinary Institute Award for Best Organic Hot Chocolate in 2004. Its factory runs on renewable energy.

Jarrow Formulas for familE, a new vitamin E formulation using all four members of the natural tocopherol family along with all four members of the related tocotrienol family; Flax Essence, the first flax lignan supplement standardized at 20%; and Liver PF, a blend protecting liver function that includes PolyPC, ALA, cytidine and silymarin.

The role of cinnamon extracts in glucose control came into view in 2004, and Hero Nutritionals played a role in product introduction and promotion. CinnaBeticII is made with water extract of cinnamon and designed to promote glucose metabolism by increasing insulin sensitivity. While whole cinnamon and fat-soluble extracts contain potentially harmful toxins, water extraction removes dangerous compounds while leaving the polymers responsible for glucose metabolism intact. Water extract of cinnamon has been found in USDA studies to promote glucose metabolism in all diabetics and reduce LDL cholesterol levels in individuals with type 2 diabetes. CinnaBeticII is made with a patented water extract of cinnamon, Cinnulin PF.

NBJ solicited the industry via email, website and word of mouth for nominations for the NBJ awards. Awards were determined by an internal committee of NBJ staff and NBJ editorial advisory board members. The 2004 NBJ awards will be presented in a special ceremony at the NBJ Newport Summit at the Ritz Carlton in Dana Point, Calif., July 20-22, 2005. Awards disclaimer: Company audits were not conducted to verify information or claims submitted with nominations.

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